Q1: What are the difference between the Benihana production process and that of a typical system?
Answer: There are a number of differences between Benihana production process and the others restaurant. * First of all, they make a difference in the way they serve the food (steakhouse) by cooking in front of the customer by Japanese chef and the decor was that of authentically detailed Japanese country inn. * Secondly, Benihana reduce the space by borrow the method of cooking from his father (incorporate the hibachi table concept into his operations) this is and efficient way to reduce the space used for back of the house like preparation area, dry and ferigerated storage, employee dressing rom and office space only about 22% compare with 30% of normal restaurant. * Moreover, their menu also has 3 entrees. This help them keep control the cost, no waste and can cut food cost to between 30% to 35% of food sales depending on the price of meat. * The fourth difference line in the way they decorate their restaurant. All building material are gathered from Japan and then they were reassemble by Japanese carpenters. That is the way they bring Japanese traditional to American to make original. * Next, the food and beverage spit was 70/30 => keep expense percentages at low levels: food 30%, Labor 10%, Adertising 10%, Rent 5%. * Otherwise, they worry about their food quality when they franchise because they see a seas of problem if they franchise more so they decide to keep only 5 franchise restaurant. * Different in dinning area, service was provide by a chef and waitress, each team handled two regular tables * Most units were located in business district, where has high traffic. This also be one of the basic criterion of Benihana when they choose the location to run their business. * To keep their food quality undercontrol, all of their chef was highly trained. All were young, single, native Japanese and all were certified. * They also know how to combine Japanese workers with American management techniques. * Simple managerment structure both in all unit and company( mainly run by 3 people) * They spend 8-10% of it gross sales invest in creative advertising and public relations. Never place advertisements on the entertainment pages of newspapers on the theory.
Question 2: Examine the production system in detail what are the major design choices which generate operating efficiences.
There are a number of things make Benihana success with their business, thus in our point of view, there has 3 main reason for their success: good at quality control, simple management structure, make different with the others. * First of all, Benihana did very well in control their food quality. They check both input and output of product line. Their menu also have 3 main dishes, this give them chance to cut food cost and no waste when they cook food. Otherwise, when they see the disadvantages of franchise they dicided to stop it to maintan their images and bandname it is one of the wisest dicision of them. As investors just thought about how much they can get from business, thus they have no experience in restaurant. Moreover, they invest money on business so they will have the right to run it by their way of thinking that make a mountain of difficults in controling. One of the most important things they did to remain their pruduction efficience and make competitive advantages is that their staffs were highly trained and all of them were certified with 3 years formal apprenticeship. Not only good at training their staff, their policy in employee also make the loyalty from their staff and this is one of the key initial secret to reach success. * Next, the management structure is very simple, all company was run by three main manager. With this organization structure, there are a lot of flexible on manage and minimum the risk from giving oder and transfer order in the company. In addition, they can bring out fast decision if there are somethings wrong or not good. These make company more easier to adapt to market change. * Benihana always make them different between the others from their food to the style they serve it, from the method they decorate the restaurant to the way they choose the location to place their restaurant, even if their advertising policy also being differ from the last one. It is one of the good way to make customer awareness about their product, their images. These make customer curious about them, they will make their own question about Benihana like: “What it is?” How about if I try it?”